Fewer miles driven: How to optimise your car insurance and save on premiums
29/03/25
3
Minutes
Katrin Straub
Managing Director at nextsure
Have you driven your car much less than expected this year? Many motorists pay unnecessarily high premiums for their car insurance because the stated annual mileage no longer reflects reality. Find out here how you can save real money by reporting fewer kilometres driven.
The topic in brief and concise terms
Report fewer kilometres driven to your motor insurance to save on premiums or receive a refund.
A realistic estimate and regular review of your annual mileage is crucial for a fair insurance premium.
If the mileage allowance is exceeded, additional payments or contractual penalties may apply, so prompt notification is important.
Quick Facts: Fewer miles driven and your car insurance
The annual mileage you declare directly affects the amount of your insurance premium. If you find that you have driven fewer kilometres than stated in your motor insurance, you should report this to your insurer. Many insurers refund overpaid contributions or adjust the premium for the current or next insurance year. A reduction of, for example, 5,000 kilometres can already mean savings of up to 15 per cent.
It is important to check the mileage figure regularly and adjust it if necessary. An honest declaration protects you from possible problems in the event of a claim and secures you a fair premium. Most insurers offer straightforward ways to report the mileage online or by phone.
Practical guide: Calculate mileage correctly and claim back money
Have your driving habits changed and are you now on the road less often? Then it’s time to inform your car insurance provider about the lower number of kilometres driven. The first step is to determine your current annual mileage accurately. For example, note down the distances you drive over several weeks or use the odometer readings from the start and end of the year.
Here’s how to proceed if you may be able to get money back:
Check the mileage: Compare the current mileage with the figure at the start of the contract or the last notification.
Contact the insurer: Let your insurer know the new, lower mileage. This can often be done by email, via the online portal or by phone. Ask specifically for a retrospective adjustment.
Obtain confirmation: Have the change and the new premium amount confirmed in writing.
Credit or premium adjustment: Your insurer will check whether a refund is possible or whether your premium will be reduced going forward. A reduction from twenty thousand to fifteen thousand kilometres can save around twelve per cent.
Some insurers even offer a fair-mileage policy, where you automatically get money back if you’ve driven less. The exact amount you save depends on various factors, such as your no-claims bonus class and the vehicle type classes of your car. Knowing the premium rate for your car insurance helps you assess the impact more accurately.
Understand kilometre tiers and use them optimally
Insurers use so-called mileage tiers to calculate the premium for motor insurance. These tiers divide annual mileage into different bands, for example up to 6,000 kilometres, up to 9,000 kilometres or up to 12,000 kilometres. The higher the mileage class, the higher the premium is usually, as the risk of accidents statistically increases.
If you move into a lower mileage band because you have driven fewer kilometres, you may be able to save on premiums. There is no standard mileage scale that applies to every motor insurance policy; the bands can vary from provider to provider. A typical scale could look like this:
Up to 6,000 km
6,001 to 9,000 km
9,001 to 12,000 km
12,001 to 15,000 km
15,001 to 20,000 km
20,001 to 25,000 km
Our expert tip: Estimate your annual mileage conservatively, but realistically. Providing a figure that is too low can lead to back payments during a later review. Many insurers also allow the mileage to be adjusted during the policy year. Find out about the General Terms and Conditions for motor insurance of your provider.
Legal aspects: obligations and consequences regarding mileage readings
As the policyholder, you are obliged to provide accurate information about your annual mileage. This is known as a duty of disclosure. A deliberately false declaration to save on premiums can have unpleasant consequences. At the latest in the event of a claim, the odometer reading is often checked.
If you find that you are significantly exceeding the stated mileage, you should report this to your insurer immediately. Most insurers are lenient when it comes to minor exceedances of ten to fifteen per cent. However, substantial discrepancies can lead to additional charges. In extreme cases, especially in the event of a deliberate false declaration, you may even face a contractual penalty equivalent to one year's premium or a reduction in benefits in the event of a claim. However, courts have ruled that contractual penalties may be disproportionate in the case of merely negligent exceeding of the mileage, and that the burden of proof for intent lies with the insurer. Also keep in mind your no-claims bonus classes, which remain protected through honest information.
If, on the other hand, you have driven fewer kilometres, you are on the safe side as far as penalties are concerned. Reporting this can even save you money. It is therefore always advisable to notify changes in mileage promptly. This not only secures your insurance cover, but can also optimise your car insurance costs.
Expert depth: Current rulings and drafting tips on mileage
The courts repeatedly deal with disputes concerning mileage figures in motor insurance. An important principle states that a contractual penalty for exceeding the reported mileage can be disproportionate if the breach is merely negligent. The model conditions of the Gesamtverband der Deutschen Versicherungswirtschaft (GDV) provide for a contractual penalty primarily where the mileage stated is knowingly too low. This strengthens the position of consumers who have unintentionally driven more than intended.
Our expert tip: Keep a regular record of your mileage, for example by taking photos of the odometer at the start and end of the insurance year or when there are significant changes in your driving situation (e.g. a new commute). This serves as proof to your insurer. If you have driven fewer kilometres, use this documentation to proactively request a premium adjustment or refund. If you are unsure about the partial cover and fully comprehensive cover conditions in connection with mileage figures, advice may be worthwhile.
The following tips will help you adapt your motor insurance optimally to your driving performance:
Annual review: Make it a habit to compare your actual annual mileage with the mileage recorded in your policy once a year.
Allow a buffer: When estimating, allow a small buffer for unforeseen journeys, but do not overdo it. A buffer of five thousand kilometres can become unnecessarily expensive.
Report changes immediately: A new job with a shorter commute or switching to public transport should be a reason to adjust your mileage promptly.
Ask for a retroactive adjustment: If you have been driving less for some time, ask your insurer about a retroactive premium adjustment. Many providers are accommodating here.
Proactive communication with your insurer is the key to a fair premium and full insurance cover. This applies in particular if you find that you need to adjust your mileage for your fully comprehensive insurance.
nextsure: Your partner for tailored motor insurance
Correctly estimating and reporting your mileage is just one of many aspects of an optimal motor insurance policy. At nextsure, we understand that every driving situation is unique. As a digital insurance portal, we offer you not only transparent information, but also support in optimising your insurance cover. If, for example, you find that you have driven fewer miles, we will help you initiate the necessary steps with your insurer. Our mission is to offer you tailored, easy-to-understand insurance solutions. We are happy to help you review and adjust your car & mobility insurance.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific optimisation recommendations.
More useful links
The Federal Motor Transport Authority (KBA) provides statistics on vehicle mileage in Germany.
The Federal Statistical Office (Destatis) provides data on vehicle mileage and fuel consumption.
The German Insurance Association (GDV) provides information on how motor vehicle insurance premiums are calculated.
The Consumer Advice Centre gives tips on how to save on motor vehicle insurance.
The Environment Agency provides information on sustainable mobility.
Statista provides statistics on the average mileage of passenger cars in Germany.
Mobility in Germany provides comprehensive data and analyses on mobility in Germany.
FAQ
How do I report fewer kilometres driven to my car insurance provider?
You can usually report your lower mileage by phone, email or via your insurer’s online portal. Please provide the current mileage and your policy number.
Is there a deadline for reporting lower mileage?
There is no fixed deadline for reporting fewer kilometres driven. However, it is advisable to do so promptly as soon as you notice a significant reduction, so that you can benefit from an adjustment to your contribution as quickly as possible.
Can I also receive money retrospectively for having driven fewer kilometres?
Many insurers allow retrospective adjustments to mileage and refund premiums. Ask your insurer specifically about this. Proactive communication is helpful in this case.
What are mileage tiers in motor insurance?
Mileage brackets are ranges of annual mileage defined by insurers (e.g. up to 6,000 km, 6,001-9,000 km). Your classification into one of these brackets affects the amount of your premium.
What is the best way to calculate my annual mileage?
Add up all regular journeys (commuting, shopping) and estimate irregular journeys (holidays, trips). Alternatively, note the odometer reading at the start and end of the year and calculate the difference.
What if I only drive less for a short period, e.g. because of illness?
In the case of short-term changes, immediate notification is usually not necessary, unless the reduction is significant and will extend over a longer period of the insurance year. Monitor your mileage and adjust it accordingly at the end of the insurance year or with the next premium bill.
